Regional Disparities, Growth, and Inclusiveness

By Holger Floerkemeier, Nikola Spatafora, Anthony Venables

February 12, 2021

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Format: Chicago

Holger Floerkemeier, Nikola Spatafora, and Anthony Venables. Regional Disparities, Growth, and Inclusiveness, (USA: International Monetary Fund, 2021) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

We discuss regional disparities in economic performance and living standards. We first set out some key facts, and provide a conceptual framework to help analyze whether such disparities are efficient, or instead reflect market and/or policy failures. We examine whether policy attempts to reduce regional disparities necessarily involve a trade-off between equity and efficiency. We then investigate whether policymakers should focus on boosting the economic performance of lagging regions—or, conversely, accept the presence of regional disparities, and instead assist households in lagging regions through transfer payments, investments in education, health, and other basic services, and by facilitating out-migration.

Subject: Housing, Income, Labor markets, Productivity, Wages

Keywords: Agglomeration economy, Community development, Earnings differential, Inclusive Growth., Market forces, Place-Based Policies, Regional Disparities, Supplier firm, Wage competitiveness, Wage difference, WP

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/038
Stock No:

WPIEA2021038
ISBN:

9781513569505
ISSN:

1018-5941

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